Forexlive Americas FX news wrap: Quiet day. Dollar down. Stocks continue recovery
Forex new for NY trading on February 12, 2018
- Stock recovery continues. S&P has best 2 day streak since June 2016.
- Forex technical analysis: NZDUSD taking a peek above 100 hour MA.
- Australian dollar quietly mounts a comeback
- US crude oil settle up marginally on the day
- Euro continues to grind towards session high
- US January budget surplus $49.2B vs $51.0B expected
- Donald Trump Jr's wife Vanessa hospitalized after opening letter with white powder
- Bitcoin extends above hourly MAs. Trend line targeted.
- Japan may tighten cap on individual forex trading - report
- Gold nears Friday's high as the market counts down to lunar new year
- Audio recap: What hangs in the balance
- White House boosts US GDP forecasts
- European stocks end session with gains
- BOE's McCafferty: It is quite likely that rates will move up slightly faster
- Credit Suisse jumps on the four-Fed hikes bandwagon
- NY Fed: 3-year inflation expectations 2.8% vs 2.9% in December
- Trump budget calls for $1.7 trillion in cuts to mandatory spending
- Ray Dalio: We're later in the economic cycle than I thought
- Bitcoin turns a little lower but still underpinned for the moment
- When the government controls everything, it's tempting to blame it for stock market losses
- S&P 500 climbs above the 100-day moving average at the open
- Trump will unveil $200 billion infrastructure plan today
- EURUSD extends narrow range in early NY trading to the downside. What next?
- It's all about the ebb and flow today with little on the US economic calendar
- OPEC cut compliance hit record in January - OPEC Secretary
- Quiet start to the trading week. AUD is the strongest. NZD is the weakest.
- Nothing on the data slate to come but BOE MPC's McCafferty up to the mic later
- ForexLive European FX news wrap: Steady as we go as a new week gets underway
A snapshot of other markets is showing:
- Spot gold up $6.73 or 0.51% at $1322.77
- WTI crude oil futures are up $.18 or 0.30% at $59.38
- Bitcoin is trading up about $589 at $8800
In the US stock market today, prices rose sharply. The 2-day gains are the most since June 2016.
- S&P up 36.45 points or 1.39%
- NASDAQ up 107.47 points or 1.56%
- Dow industrial average up 410.37 points or 1.7%
European shares were also higher today:
- German DAX rose 1.45%
- France's CAC rose 1.20%
- UK's FTSE rose 1.19%
- Spain's Ibex rose 1.36%
- Italy's FTSE MIB rose 0.77%
- Portugal's PSI 20 rose 1.48%
In the US debt market today, yields ending mixed after being higher earlier in the day:
- two-year 2.073%, unchanged. The high reached 2.112%
- five-year 2.555%, up 1.1 basis point. The high reached 2.5875%.
- 10 year 2.856%, up 0.5 basis points. The high reached 2.893%.
- 30 year 3.142%, down 1.7 basis points. The high reached 3.186%.
The day was absent economic data today although President did announce a private/public infrastructure plan and a budget plan which called for $1.7T cuts in mandatory spending.
The stock market was once again a highlight. This time, the market continued the rebound from the spike lows on Friday. Each of the major indices advanced by 1.39% or more. The Dow led the charge with a 1.7% increase.
In the forex market, the AUD was the strongest of the majors currencies, while the CAD was the weakest.
The USD was mostly lower, falling the most vs the AUD (-0.56%), the EUR (-0.34%) and the JPY (-0.16%), and rising the most vs. the CAD (+0.11%) and the CHF (+0.10%).
Technically, both the AUDUSD and the NZDUSD moved above their 100 hour MAs in the NY session and are advancing into the new trading day.
The AUDUSD traded above and below the 100 hour MA for the early NY hours, but started to grind higher away from the MA (blue line in the chart above), in the NY afternoon session. The 200 hour MA at 0.7892 is a target in the new trading day on continued buying.
The NZDUSD took more time to break higher, but it found support against a lower trend line in the NY session, before cracking the 100 hour MA and moving higher into the new trading day.
For the EURUSD, the price is ending the day above the 100 hour MA at 1.22834, but below a ceiling area defined by swing highs and the 38.2% retracement. That area comes in at 1.2294-99.
Another interesting pair technically, is the USDCAD. It tried to get above its 100 day MA but failed. On the downside, it tried to move below the 100 hour MA but ran into trend line support. Traders can use the levels for bullish or bearish bias in the new trading day.